Seizing the Commuting Moment: Contextual Targeting Based on Mobile Transportation Apps

Forthcoming, Information Systems Research

42 Pages Posted: 22 Mar 2018  

Anindya Ghose

New York University (NYU) - Leonard N. Stern School of Business

Hyeokkoo Eric Kwon

KAIST College of Business

Dongwon Lee

Korea University

Wonseok Oh

KAIST College of Business

Date Written: March 17, 2018

Abstract

Despite the average daily commuting time of commuters increasing by the day, the way marketers can benefit from our commuting behaviors has not yet been thoroughly examined. In collaboration with one of the largest global mobile service platform providers, this study investigates how contextual targeting with commuting is associated with responses to mobile coupons. The analysis is based on a field study in which 14,741 mobile coupons were sent to 9,928 public transit app users on commuting routes or routes other than commuting routes (i.e. commuters or non-commuters). The key findings indicate that commuters are about three times as likely to redeem their first mobile coupon compared to non-commuters. Further analyses allowing users to receive multiple coupons provide useful insight into an effective distribution strategy for mobile coupons. The findings suggest that enhanced receptiveness to mobile coupons is more perceivable when users obtain multiple coupons. Additionally, multiple-coupon distribution strategy increases response rates more effectively among non-commuters than commuters. Moreover, coupons with short expiration dates more successfully improve the response rates of commuters than do coupons with long expiration dates. For non-commuters, however, the reverse holds true; their response rates are higher for coupons with long expiration. Finally, commuters redeem coupons not only more frequently but also at a faster rate. Both dynamic and static matching methods are adopted to address possible selection biases. By carefully exploiting commuting, which is easily identifiable and occurs throughout the world, managers may improve their mobile marketing effectiveness.

Keywords: commuting, contextual targeting, field study, mobile coupon, mobile marketing

Suggested Citation

Ghose, Anindya and Kwon, Hyeokkoo Eric and Lee, Dongwon and Oh, Wonseok, Seizing the Commuting Moment: Contextual Targeting Based on Mobile Transportation Apps (March 17, 2018). Forthcoming, Information Systems Research. Available at SSRN: https://ssrn.com/abstract=3142835

Anindya Ghose

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
New York, NY NY 10012
United States

Hyeokkoo Eric Kwon (Contact Author)

KAIST College of Business ( email )

85 Hoegiro Dongdaemun-Gu
Seoul 130-722, 130-722
Korea, Republic of (South Korea)

Dongwon Lee

Korea University ( email )

Anam-Dong, Seongbuk-Gu
Seoul 136-701, 136701
Korea

Wonseok Oh

KAIST College of Business ( email )

85 Hoegiro Dongdaemun-Gu
Seoul 130-722, 130-722
Korea, Republic of (South Korea)

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